Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Implemented initiatives to reduce greenhouse gas emissions including the installation of rooftop and floating solar panels.
• Over 28,000 rais of our rubber plantations have received FSC certification.

Social Achievements

• Emphasis on the benefits and living conditions of employees.
• Provide equal opportunity to disabled people and take an equal and fair approach to human resources.

Governance Achievements

• Operate with transparency and have received various accolades as inclusion in the THSI index for 8 consecutive years, membership in the Thai Private Sector Collective Action Against Corruption (CAC), and an excellent corporate governance score from the Thai Institute of Directors (IOD).

Climate Goals & Targets

Environmental Challenges

• Natural rubber price volatility
• Discrepancy between the growth in demand for natural rubber and expectations
• Operations and investments in foreign countries
• Dependence upon services of key management
• Supply chain management
• Production disruption and/or production stoppage
• Environmental management
• Information technology risk
• Exchange rate volatility
• Legal and compliance risk
• Government intervention
• Risks of epidemics (COVID-19)
• Climate change risks and regulations, standards, and sustainability goals

Mitigation Strategies

• Policies to manage risks related to natural rubber price volatility, including raw material sourcing management in terms of prices and quantities and the use of rubber futures and physical forward contracts when applicable.
• Closely monitors any changes that may affect market demand for natural rubber and gloves and attempts to minimize their effect on the Company’s operations.
• Closely monitors the operations, economic climate, and changes in the relevant domestic and international laws and regulations to assess opportunities and risks as well as formulate the appropriate strategies to minimize any negative effect on the Company.
• The Board of Directors has assigned the Nomination Committee to search for qualified candidates who could potentially assume positions as the Company’s directors or executives to ensure that such persons will have the required knowledge, skills, and experience to carry out our business strategies. Moreover, the Company has a personnel management scheme that includes job rotations, the ‘STA Development Program,’ performance evaluation system, the provision of competitive remuneration and welfare, and career advancement opportunities.
• Expanded operations to all levels of the supply chain, from upstream and midstream to downstream.
• Business continuity plan (BCP) to ensure continuity of the Company’s operations in the event of a contingency or any unforeseen circumstances that could disrupt the operations.
• ISO 14001 by analyzing the organization’s context including the stakeholder’s needs and expectations to identify the risks that could affect the operations.
• Policies to manage IT risk, data-backup system, disaster recovery plan, incident management system, penetration tests and vulnerability assessments, cybersecurity awareness training.
• Using financial derivatives to hedge foreign exchange exposure.
• Business unit responsible for monitoring amendments of laws and regulations, Good Corporate Governance and Business Ethics Handbook, Anti-Corruption Policy, whistle-blower system, annual review of compliance and regulations.
• Carefully manages its operations under the prevailing circumstances, taking account of the intervention by the Government or any other authorities. Having production facilities located in different strategic locations, both domestically and internationally, also enables us to maintain our competitiveness in the global market.
• Closely monitor the epidemic situation, emergency response team, communication team, preventive measures, emergency action plans and business continuity plans.
• Continuously implemented measures to reduce greenhouse gas (GHG) emissions, investments in low-carbon projects, carbon footprint project, promoted the use of renewable energy, joined Thailand Carbon Neutral Network (TCNN), monitored progress, reviewed GHG reduction strategies and target and improved operations.

Supply Chain Management

Supplier Audits: 50% of Tier 1 suppliers

Responsible Procurement

• Sustainable Natural Rubber Procurement Policy
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Climate change risks and regulations, standards, and sustainability goals

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards 2021, UN Global Compact

Certifications: ISO 14001, ISO 45001, FSC

Third-party Assurance: KPMG Phoomchai Audit Ltd.

UN Sustainable Development Goals

• SDG 2
• SDG 5
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 14
• SDG 15
• SDG 16

The report links operations to the Sustainable Development Goals (SDGs).

Sustainable Products & Innovation

• FSC-certified natural rubber products

Awards & Recognition

• Thailand Sustainability Investment (THSI) for 8 consecutive years
• Many other awards in sustainability, social and community responsibility, labor and safety